Network Virtualization using Generic Routing Encapsulation (NVGRE) is a network virtualization technology adapted to ameliorate scalability problems associated with large cloud computing deployments. It uses Generic Routing Encapsulation (GRE) to tunnel layer 2 packets over layer 3 networks. In accordance with a NVGRE tunneling mechanism, a first device, referred to as the originating tunnel end point, uses a format associated with NVGRE protocols to encapsulate a data packet, and transmits the encapsulated packet to a second device, referred to as the terminating tunnel end point. The terminating tunnel end point decapsulates the data packet and forwards it to an intended destination device.